Nike is making a major strategic shift as it brings its products back to Amazon’s US marketplace after more than five years, while also raising prices on a range of items starting June 1. The dual move comes as new CEO Elliott Hill looks to revitalize the iconic sportswear brand in the face of sliding sales and intensified competition.
Back in 2019, Nike pulled out of Amazon in favor of focusing on direct-to-consumer sales through its own website and a curated network of retail partners. But with revenues declining and rivals like On, New Balance and Adidas gaining ground, Nike is seeking fresh avenues to reach shoppers and restore its market edge.
“Nike is investing in our marketplace to ensure we’re offering the right products, best services and tailored experiences to consumers wherever and however they choose to shop,” the company said in a statement explaining the changes.
Alongside the Amazon return, Nike is expanding its retail presence. The brand is teaming up with new partners like the French department store Printemps, which just debuted its first US location in New York. Nike is also experimenting with new retail experiences, recently opening a collaborative concept store with Urban Outfitters to attract Gen Z consumers with its latest sneakers.
Price hikes are also on the horizon. Beginning June 1, prices will rise on many Nike items. According to sources familiar with the company’s plans:
- Nike shoes priced between $100 and $150 will see a $5 increase.
- Shoes above $150 will go up by as much as $10.
- Various apparel and equipment will also get price bumps of up to $10.
- However, certain items will not be affected, including children’s clothing and footwear, products under $100, Air Force 1 sneakers, and Michael Jordan-branded merchandise.
Nike’s latest earnings revealed a 9% drop in global sales last quarter, with a particularly sharp 17% decrease in China. The company is also adjusting its product lineup, reducing the supply of classic models like the Air Force 1 and Pegasus to drive demand and ensure these sneakers sell at full price. At the same time, Nike aims to shift more customers toward its newer, higher-priced Air Max running shoes.
Since taking the helm last year, CEO Elliott Hill has overseen several bold moves to reignite growth. Among his biggest initiatives is a collaboration with Kim Kardashian’s Skims brand to launch a new activewear line, set to hit stores this spring.
Despite these efforts, Nike’s stock has dropped nearly 20% over the past year, underscoring the pressure facing the world’s leading sportswear brand as it enters a new phase of competition and reinvention.
